For the Fiscal Year Ended on 31st December 2019
It gives me a great pleasure to welcome you to the Ordinary General Assembly of Privatization Holding Company, and to present the company's Annual Report for the fiscal year ended on 31/12/2019.
Privatization Holding Company made a net loss of KWD 676,532 in 2019 compared with net loss of KWD 4,010,424 for the year end 2018.
The total shareholder equity reached KWD 83,193,373 at the end of 2019 compared to KWD 87,206,317 at the end of 2018.
According to the company strategy during 2019, PHC has paid almost all of its outstanding commitments, and continued its selective divesture / exit strategy from certain investee companies. PHC has exited its investment in ZOUK REEIF II FUND for KWD 2,952,288.
PHC, as part of a Consortium has also submitted a Major bid to develop and operate a Mall and residential real estate property. The Consortium decided to submit an offer for the Jaber Al Ahmad J3 PPP Investment opportunity, a 25-years PPP project with the Public Authority for Housing Welfare (PAHW). PHC’s participation in the consortium is 32.5%. PHC, along with the Consortium has approached banks for financing this project. The Consortium has been awarded the overall ranking of 1st place and is nominated as preferred investor.
PHC has continued its investment in B&B Company along with Al Yousifi, which is building a four stars hotel in Kuwait. PHC owns 40% stake in the project and it is expected to be completed by January 2022.
Additionally, we have improved our corporate governance system by strengthening the concept of international control, disclosure and other corporate governance applications. We have placed in your hands the Corporate Governance Report for 2019 to familiarize yourself with the governance standards followed by the company during the last year.
Moving forward, the company recognize its obligations and reaffirms that it shall exert continued efforts to enhance the company's position in local and international markets, through varied and optimal investment instruments.
In conclusion, I would like to extend my thanks and appreciation to all those who contributed towards enhancing the company’s future path; and also extend our thanks to all the company's staff for their diligent and continuous efforts for the progress and success of the company.
May God Almighty always guide our way towards serving our country and to grant our efforts with success.
Chairman of the Board
Riyadh S. Edrees